Allegheny Valley Camp Meeting Ass'n v. Kountz

Citations

• 29 Pa. Super. 110
• 1905 Pa. Super. LEXIS 273

Syllabus

<p>Corporations — Assessments—Presumption—Burden of proof — Evidence.</p> <p>In an action against a shareholder of an association to recover an assessment levied by the managers under authority given by the charter, the presumption is that the managers acted honestly and according to their best judgment in making the assessment, and the burden of showing that it was so largely in excess of the requirements of the association as to warrant an inference of fraud or culpable negligence on the part of the managers, rests on the defendant. An allegation by the defendant that the assessment was exorbitant and unreasonable, inasmuch as it exceeded the amount required to pay interest and taxes, is insufficient, in the absence of any allegation that the assessment was larger than was required to defray the expenses of the association for the year, or that interest and taxes were the only expenses to be met.</p> <p>Corporations — Shares—Assessments—Lien—Recovery.</p> <p>Where the articles of association of a corporation of the first class under the Act of April 29, 1874, P. L. 73, sec. 6, provides for assessments on lots represented by the stock and that unpaid assessments shall be a charge against the lots until paid, that the treasurer after six months’ default shall proceed by law to collect the assessments, and that no stockholder in arrears shall be allowed any of the privileges of the association, or be allowed to transfer his stock until the arrears are paid, the association cannot hold the shareholders personally liable for assessments, but will be confined to the lots owned by the shareholders in the recovery of the assessments.</p>